Cybersecurity Ecosystem

December 2019

A Top Hub in the Nation for CybersecurityCybersecurity and advanced computer technologies have been recognized, by state and local governments, as an industrial cornerstone for the Arizona economy. Leadership is committed to supporting this vital industry. Greater Phoenix is one of the top markets in the nation to locate and expand cybersecurity operations.

Greater Phoenix is well-positioned to support both new-to-market cybersecurity companies and the expansion of our existing cluster.

Here are just a few reasons why so many top companies choose Greater Phoenix:

• A large and talented workforce

• A massive education pipeline developing workers with vital skills

• Faster commute times than peer markets ensuring easy access to a robust talent pool

• Competitive operating cost and tax environment with several available incentives

• More affordable cost of living for the employees that make companies great. The region opens the door to a better quality of life than peer markets

• Active cybersecurity community with substantial opportunities to create partnerships

Secure Your Future inGreater Phoenix

Cybersecurity

Value Proposition

CybersecurityValue

Proposition

WorkforceEcosystem

Qualityof Life

Cyber ValueChain

Competitive Operating

Costs

Quality of Life Infrastructure Cyber Value Chain

Workforce Ecosystem

Competitive Operating Costs

• Significantly lower cost of living across all major expenditures

• Shorter commute times for more free time

•More than 300 days of sunshine annually

• Fast fiber connectivity

•Consistent and reliable power coverage

•Robust network of data centers

•Access to a leading domestic and international airport

• Low risk of natural disasters

•A robust ecosystem of independent cybersecurity companies and cybersecurity units from Fortune 500 companies

•Access to secure testing facilities

•Highly engaged industry cluster and support network

• Specialized programs at universities across the state to train talent

•University alignment and partnerships to undertake cybersecurity research and development

•Cheaper real estate and benefit costs compared to peer markets

• Several quality incentives to further decrease operating costs

Cybersecurity

Infrastructure

Greater Phoenix Talent PipelineBelow are total numbers of non-distance program completions at colleges and universities in the Greater Phoenix region for computer engineering, information technology, computer and software engineering, and computer science programs. The region produced 2,200 graduates in these fields during the 2017 to 2018 school year. The region’s universities are committed to supplying the workforce needed to enable companies to scale in the region. Comparison data for peer markets has been provided below. Data was adjusted to control for the drastically different population sizes of the markets.

Talent Pipeline

Non-Degree Certificates Associate Bachelor Master Doctor

2,718 342 986 772 108

Source: Emsi 2019 Q4 Dataset

Competitor Markets’ Talent Pipeline

Cybersecurity

45.5

111.9

50.7

58.6

50.5

87.6

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Phoenix Boston Los Angeles New York San Francisco Seattle

Cyber-Related Degrees Per 100,000 Population

Notable Programs in Cybersecurity-Related Fields

Talent Pipeline

Arizona State UniversityArizona State University is committed to partnering with corporate, education and government organizations to produce a skilled cybersecurity workforce.

• Information technology

• Information assurance

• Computer systems engineering

• Computer science

University of ArizonaThe University of Arizona is committed to partnering with government and corporations to train job-ready students. This commitment has led to their Cybersecurity programs being designated a national center of excellence.

• AZSecure cybersecurity fellowship program

• Management information systems with emphasis in information assurance

• Cyber operations

• Enterprise security certificate

Grand Canyon UniversityGrand Canyon University is a private Christian university committed to training the next generation of working professionals.

• Computer programming

• Computer science with an emphasis in big data analytics

• IT degree with cybersecurity emphasis

• Arizona Cyber Warfare Range facility

Cybersecurity

Notable Programs in Cybersecurity-Related Fields (cont.)

Talent Pipeline

University of Advancing TechnologyThe University of Advancing Technology has one of the longest-running Cybersecurity degrees in the southwest. The university has trained more graduates with an NSA and CAE-credentialed education than any other university’s Cybersecurity program in the southwest.

• Network security

• Network engineering

• Technology forensics

• Information assurance

Maricopa Community CollegesEstrella Mountain Community College’s Cybersecurity Center has been designated a National Center of Academic Excellence (CAE) in Cyber Defense Two-Year Education by the National Security Agency and the Department of Homeland Security

• Computer applications technology

• Programming and systems analysis

• IT and power systems security

• IT security associate

Embry-Riddle Aeronautical UniversityEmbry-Riddle is an aeronautical university that offers programs in cyber intelligence and security. Their College of Security and Intelligence was the first comprehensive degree-granting college of its kind in the United States.

• Cyber intelligence and security

• Global security & intelligence studies

Cybersecurity

Notable Research Centers and Professors in Cybersecurity-Related Fields

University Alignment

Arizona State University• Nadya Bliss, Director of the Global Security Initiative

• Gail-Joon Ahn, Director of the ASU Center for Cybersecurity and Digital Forensics

• ASU Research Enterprise

• The Information Assurance Center

• The ASU Center for Emergency Management and Homeland Security

• Laboratory of Security Engineering for Future Computing

• Cyber and Network Security Group

• Cyber-Socio Intelligent Systems Laboratory

University of Arizona• Dr. Hsinchun Chen, leading cyber security research

• Dr. Sudha Ram, Analytics, Director of INSITE Center

• INSITE: Center for Business Intelligence and Analytics

• Dr. Salim Hariri, Site Director of Center for Cloud and Autonomic Computing

• Artificial Intelligence Laboratory

• Wireless Network and Cyber Security Research Lab

• Information Assurance and Security Education Center

Cybersecurity

Notable University Rankings

University Alignment

Arizona State University• #1 most innovative school (2016, 2017, 2018, 2019, 2020), U.S. News &

World Report

• #2 Online Bachelor’s Degree Programs, U.S. News & World Report

• #6 Online graduate business programs, U.S. News & World Report

• #6 Online MBA program, U.S. News & World Report

• #25 Global universities, Economics/Business, U.S. News & World Report

University of Arizona

• #3 graduate Information Systems program, U.S. News & World Report

• #4 undergraduate Management Information System program, U.S. News & World Report

• #4 Online Graduate Computer Information Technology Programs

• #12 Entrepreneurship program, U.S. News & World Report

Cybersecurity

Research & DevelopmentArizona Cyberwarfare RangeThe Arizona Cyber Warfare Range is designed to develop a well-trained cybersecurity workforce. This is achieved through self-paced training, organic mentoring and a real-world experience. Many hands-on exercises are hosted, serving everyone from beginners to tenured professionals through real-world operations. Participants learn Computer Network Attack (CNA), Computer Network Defense (CND), and Digital Forensics. There is no cost to add your company’s technology to the Range for testing. The Range is always looking for opportunities to serve the greater community.

Source: http://azcwr.org/about-azcwr

United States Army Network Enterprise Technology CommandThe mission of the United States Army Network Enterprise Technology Command (NETCOM) is to lead the global operations of the Department of Defense Information Network (DoDIN) which ensures freedom of action in cybersecurity while denying the same to our adversaries. NETCOM is headquartered at Fort Huachuca, AZ and provides all the information technology services for all network communications. The operation employees nearly 16,00 soldiers, civilians, and contract personal around the world to support its operations.

Source: http://www.arcyber.army.mil/Pages/NETCOM.aspx

Arizona Statewide Cyber Workforce ConsortiumThe Arizona Statewide Cyber Workforce Consortium will develop a unified approach to ensuring the state has adequate cybersecurity resources. This work is building from existing efforts developed over the past five years. This partnership will connect applicants from traditional and nontraditional training backgrounds to provide skilled workers for the region’s cybersecurity cluster.

Source: http://arizonacyber.org/

Cybersecurity

Research & DevelopmentASU Center for Cybersecurity and Digital Forensics

The Arizona State University Center for Cybersecurity and Digital Forensics brings together leading researchers from engineering, social sciences, and business to solve problems in identity management, privacy, malware, security, digital forensics and predictive analytics. This research is conducted with several industry partnerships and has led to the creation of custom education and training programs. The work conducted at the center is a vital part of the university’s efforts to support the entrepreneurial ecosystem.

Source: https://globalsecurity.asu.edu/cdf

Arizona Wireless Network and Cybersecurity Research Lab

The Wireless Network and Cybersecurity Research Lab is a University of Arizona lab that is focused on conducting research in wireless and cybersecurity. The current emphasis of the lab is on wireless network performance modeling and optimization, wireless and spectrum security, privacy-preserving big data analytics, and cyber-physical system security.

Source: http://wiser.arizona.edu/

Cybersecurity

Cybersecurity

Cybersecurity CanyonCybersecurity Canyon is a group of industry leaders led by Ori Eisen, Joe Loomis, Sean Moshir and Kyle Starkey that has decided to take up the challenge of finding and attracting talent to staff cybersecurity openings. They are committed to developing long-term solutions that nurture a vibrant local community of cybersecurity talent and entrepreneurs. They believe that these efforts will turn the Phoenix Metro area into a hotbed of cyber talent. Additionally, the group hopes to foster new educational partnerships that help universities train job-ready students.

Source: https://www.cybersecuritycanyon.org/about-us/

AZ Pipeline

AZ Pipeline is a strategic workforce platform that is revolutionizing the way students and job seekers connect their passions and experiences with rewarding opportunities. Through this platform, individual skills, interests, and experiences are matched with local companies’ skills and experience needs. These high-quality matches produce a stronger fit between employee and employer resulting in better retention rates and workforce satisfaction. AZ Pipeline gives the job seeker control of their own career pathway through tailored resources, personally curated information and customized opportunities. AZ Pipeline provides employers with a more efficient way to access regional talent on demand, educators with an avenue to improve their curriculum to match market needm and talent with the resources needed to develop a more fulfilling career.

Industry Ecosystem

ASU Partnerships Arizona Infragard Partnerships• GoDaddy

• CISCO

• Samsung Electronics

• Allstate

• Bank of America

• U.S. Department of

Energy

• National Science

Foundation

• Microsoft

• Google

• Waseda University

• United States Army

Research

• The United States

Department of

Justice

• Peking University

• National Security

Agency

• University of Bremen

• cStor

• APS

• CyberArk

• Tanium

• Splunk

• SRP

• U-Haul

• Cisco

• Mosaic 451

• USAA

• VET SEC

• CTG Intelligence

• Cylance

• Kudelski Security

• TEP

Major EmployersGreater Phoenix has a rich ecosystem of cybersecurity companies. Listed below is a sampling of cybersecurity firms that have a presence in the region. Some of these companies were founded in the region and some of them have scaled into the region efficiently.

Industry EcosystemCybersecurity

Major Operation Centers EmployersThe Greater Phoenix region is home to a rich cybersecurity ecosystem. Part of this ecosystem is the non-cybersecurity firms that have cybersecurity operations within the region. These firms have chosen to locate their cybersecurity units in the Greater Phoenix region because of the quality and affordability of the region’s workforce.

Industry EcosystemCybersecurity

Local Innovation2018 & 2019 Cybersecurity Venture Capital DealsGreater Phoenix has a young innovation ecosystem with many growing companies. Since 2014, cybersecurity companies in Greater Phoenix have received $66.1 million in venture capital. Below are cybersecurity deals for 2018 and 2019 that involve companies headquartered in Greater Phoenix.

Bishop Fox, Phoenix• Bishop Fox is the largest private professional services firm focused on offensive security testing.

Since 2005, the firm has provided security consulting services to the world's leading organizations — working with over 25% of the Fortune 100 — to help secure their products, applications, networks, and cloud with penetration testing and security assessments. The company is headquartered in the City of Phoenix.

• On February 14, 2019, the company completed a Series A round of $25.0 million.

Securosis, Phoenix• Securosis is an information security research and advisory firm dedicated to transparency,

objectivity, and quality. Their mission is to improve the practice of information security and to help their customers by providing clear, actionable, pragmatic advice on securing your organization.

• On October 17, 2018, Securosis completed a Seed round of $2.5 million.

Emailage, Chandler• Emailage provides fraud prevention and identity verification using email address scoring.

Utilizing machine learning algorithms, email transaction history, and positive and negative data to generate a predictive risk score. Emailage leverages email addresses as unique identifiers as a basis for its solutions.

• On June 19, 2018, Emailage completed a Series B round that raised $10.0 million from Anthos Capital, Mucker Capital, Radian Capital, Tallwave Capital and Wipro Ventures.

Sitelock, Scottsdale• Sitelock is a provider of cloud-based, comprehensive website security services. It protects more

than 12 million websites through monitoring, threat prevention and other services. In 2017, SiteLock was named Arizona’s fastest growing software company by Deloitte for the third year in a row.

• On April 12, 2018, SiteLock was acquired by ABRY Partners for an undisclosed amount.

Cybersecurity

Source: Crunchbase November 2019; CB Insights November 2019

Local InnovationIncubators & AcceleratorsGreater Phoenix has a strong support network for cybersecurity companies. Listed below are some of the region’s co-working and incubator spaces that can be used by companies as they develop a presence within the region. Many of these spaces offer additional services to help connect and integrate new companies into the ecosystem.

Cybersecurity

• ASU Chandler Innovation Center

• ASU Startup Accelerator

• Avenue Business Center

• AZ TechCelerator

• Center For Entrepreneurial Innovation (CEI)

• Chandler Innovations

• Coplex

• Game CoLab

• Growth Nation

• High Tide

• JumpStartBiz – Fountain Hills

• JumpStartBiz - Tempe

• LaunchPoint

• MAC6 Leadership Academy

• Moonshot at NACET

• SEED SPOT

• Stealthmode Partners

• Tallwave

Local InnovationCo-Working SpacesGreater Phoenix has a strong support network for cybersecurity companies. Listed below are some of the region’s co-working and incubator spaces that can be used by companies as they develop a presence within the region. Many of these spaces offer additional services to help connect and integrate new companies into the ecosystem.

Cybersecurity

• ASU SkySong

• Chefs Shared Kitchen

• Co+HOOTS

• Codobe

• Cooper Crossing

• CoWorkArizona

• CoWorking on 15th Ave

• Cross Campus Scottsdale

• Elevate Coworking

• Eureka Loft

• executivehub

• EZ Spaces

• GangPlank- Chandler

• GangPlank- Queen Creek

• Gateway Executive Suites

• HeatSync Labs

• Hive @ Central

• Industrious

• InnovationHub @ GoodyearAZ

• Lux Office – Avondale

• Lux Office – Scottsdale

• Mac6

• THINKspot

• Novel Coworking Group – Heard Building, Phoenix

• Novel Coworking Group – Midtown, Phoenix

• Dobson Ranch Center

• Gainey Ranch

• Raintree Corporate Center

• Scottsdale Financial Center III

• Spaces

• Start @ West-MEC

• The Department

• The Office Bowl – 7th Avenue, Phoenix

• The Office Bowl – 12th Street, Phoenix

• Society

• Thrive Coworking for Women

• Union WorkSpace

• WeWork

• Workuity

Source: EMSI 2019 Q4 Dataset

Labor AnalysisLabor PoolThe table below shows employment for the following occupations in the selected metros.

Occupation Phoenix Los Angeles

San Francisco Seattle Boston New

York

Sales Managers 8,947 29,177 12,478 5,400 12,644 28,218

Computer and Information Systems Managers 6,009 17,910 17,515 11,976 15,482 31,244

Computer and Information Research Scientists 135 1,415 2,415 1,307 699 1,783

Computer Systems Analysts 9,672 18,830 14,637 13,722 12,957 40,576

Information Security Analysts 2,126 2,604 1,993 2,226 2,945 8,005

Software Developers, Applications 12,871 30,043 42,980 52,769 27,772 75,054

Software Developers, Systems Software 7,655 22,813 16,911 15,134 22,190 19,190

Database Administrators 1,596 3,423 2,427 1,843 2,481 8,181

Network and Computer Systems Administrators 5,927 13,169 7,373 6,688 7,789 26,866

Computer Network Architects 2,275 5,142 3,802 3,347 5,002 9,721

Computer Occupations, All Other 6,781 21,250 19,436 11,033 9,771 10,578

Total 63,994 165,774 141,968 125,444 119,733 259,417

Cybersecurity

Source: EMSI 2019 Q4 Dataset

Labor AnalysisLabor CostsGreater Phoenix has a robust supply of human capital at an affordable cost. Median wages in Metro Phoenix are significantly lower than peer markets. Below is a table of median wages across peer markets for cybersecurity occupations. The graph below shows the difference in median wages for computer occupations compared to Greater Phoenix.

Occupation Phoenix Los Angeles San Francisco Seattle Boston New York

Sales Managers $105,477 $109,200 $141,149 $137,800 $135,554 $179,296

Computer and Information Systems Managers

$135,554 $157,040 $183,269 $153,774 $151,216 $181,605

Computer and Information Research Scientists

$125,174 $120,328 $138,736 $148,699 $114,733 $133,141

Computer Systems Analysts $89,066 $93,933 $117,270 $99,757 $94,411 $108,202

Information Security Analysts $97,198 $100,381 $118,664 $106,413 $106,787 $125,986

Software Developers, Applications $100,755 $113,610 $137,675 $130,416 $108,514 $114,046

Software Developers, Systems Software $98,904 $124,488 $135,450 $123,406 $119,246 $123,656

Database Administrators $92,560 $94,390 $108,846 $111,467 $101,130 $105,789

Network and Computer Systems Administrators

$82,202 $90,750 $101,442 $96,699 $89,606 $97,594

Computer Network Architects $102,752 $115,544 $127,962 $126,485 $125,694 $124,051

Computer Occupations, All Other

$82,222 $83,138 $109,346 $91,499 $92,477 $100,485

Cybersecurity

13.8%

46.0%41.7%

21.1% 22.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Los Angeles San Francisco Seattle Boston New York

Percent Difference in Median Wages for Computer Occupations Compared to Greater Phoenix

The Annual Business Operating Cost Pro-forma has been prepared using the following parameters as an estimate for cybersecurity operations in competitor markets. Component and custom analyses to match your company’s operations can be provided upon request.

Operating Cost Analysis

Assumptions• $2,500,000 personal property investment

• 9,000 square foot Central Business District

• Utilities (per month): Included in Lease

• 86 jobs (Bureau of Labor Statistics equivalent occupations)

Occupations Employment

Computer and Information Systems Managers 2

General and Operations Managers (Human Resources) 1

Secretary 1

Computer Network Architects 9

Computer Network Support Specialists 8

Information Security Analysts 21

Computer Programmers 44

Total 86

Cybersecurity

Annual Operating Cost

Operating Cost Analysis

Source: Applied Economics Metrocomp Tool, November 2018

*Although New York does not have a personal property tax, additional taxes will be collected through the lease.

Metro Payroll Benefits Real Estate

Property Tax

Total Operating Cost Index

Phoenix $7,270,570 $1,722,805 $248,670 $55,935 $9,297,980 100.0%

Boston $8,499,954 $2,015,616 $538,470 $63,000 $11,117,040 119.6%

Los Angeles $8,257,309 $1,989,836 $361,800 $29,175 $10,638,120 114.4%

New York $8,857,190 $2,136,580 $672,210 $0 $11,665,980 125.5%

San Francisco $9,213,885 $2,217,980 $739,710 $29,500 $12,201,075 131.2%

Seattle $8,633,660 $2,067,612 $418,500 $25,951 $11,145,724 119.9%

Cybersecurity

$8,000,000

$8,500,000

$9,000,000

$9,500,000

$10,000,000

$10,500,000

$11,000,000

$11,500,000

$12,000,000

$12,500,000

Phoenix Boston Los Angeles New York San Francisco Seattle

Total Annual Operating Costs

Operating Cost AnalysisReal Estate CostsGreater Phoenix has highly affordable real estate compared to peer markets. The region also has higher absorption ability enabling your company to scale rapidly and effectively.

Source: Applied Economics Metrocomp Tool; Tax Foundation, 2018; Various state revenue departments, 2018; Oregon Dept. of Consumer and Business Services, "Workers' Comp. Premium Rate Ranking", 2016; U.S. DOL, "Significant Provisions of State Unemployment Insurance Laws", July 2018.

Arizona Tax Environment vs. Competitor MarketsArizona has a very competitive tax and fringe/mandated benefits environment compared to other major cybersecurity markets.

MetroSales Tax

Rate

Corporate Income

Inventory Tax?

Unemployment InsuranceWorkers

Comp. (Rate per $100 Payroll)

Tax Rate Basis

Rate (As % of

Payroll)Wage Base

Max. Payment

Phoenix 8.60% 4.90% Net Income No 2.00% $7,000 $140 $1.50

Boston 6.30% 8.00% Net Income Yes 2.13% $15,000 $280.50 $1.29

Los Angeles 9.50% 8.84% Net Income No 3.40% $7,000 $238 $3.24

San Francisco 8.50% 8.84% Net

Income No 3.40% $7,000 $238 $3.24

Seattle 10.10% 0.48% Gross Receipts No 1.10% $47,300 $558 $1.97

New York 8.9% 6.50% Net Income No 2.90% $11,100 $359.70 $2.83

Metro Class A Office Lease Rate

Class A Office Cost Index

CBD Office Lease Rate

CBD Office Cost Index

Office Vacancy Rates

Phoenix $28.89 100.0% $27.63 100.0% 11.8%

Boston $27.94 96.7% $59.83 216.5% 7.6%

Los Angeles $55.56 192.3% $40.20 145.5% 9.8%

New York $30.33 105.0% $74.69 270.3% 8.4%

San Francisco $63.34 219.2% $82.19 297.5% 5.8%

Seattle $39.94 138.2% $46.50 168.3% 5.9%

Source: Applied Economics Metrocomp Tool; Various brokerage market research reports, 2018; R.S. Means Construction Index, 2018; Local real estate contacts, 2018; Costar 2019 Q3 Office Market Reports.

Cybersecurity

Quality of Life

Metro Median Home Value Index Median Rent Index

Phoenix $271,600 100.0% $1,416 100.0%

Los Angeles $656,000 241.5% $2,612 184.5%

San Francisco $934,700 344.1% $3,168 223.7%

Seattle $494,100 181.9% $2,043 144.3%

Boston $465,700 171.5% $2,429 171.5%

New York $445,300 164.0% $2,289 161.7%

HousingGreater Phoenix has an affordable housing market. It is significantly cheaper to own or rent in the Metro Phoenix area compared to peer markets. Phoenix also has the second largest inventory of homes for sale, making it easier to find the right home at the right price. Even though median wages are lower in Greater Phoenix, housing is so affordable that a smaller portion of yearly income is spent on housing.

Source: Zillow Home Value Index November 2019; Zillow Rental Value Index November 2019

Metro Grocery Items Utilities Transportation Health Care Composite Index

Phoenix 100.3 106.9 100.1 89.0 99.4Los Angeles 115.6 106.8 126.4 111.2 148.0San Francisco 126.9 122.3 140.9 127.4 200.1Seattle 129.4 107.0 134.8 127.9 159.4Boston 108.1 114.8 111.3 118.4 150.1New York 141.7 111.2 127.5 110.1 254.7

Cost of LivingGreater Phoenix is more affordable for companies and the people that make them successful. Greater Phoenix is the only market with a cost of living below the national average. Across all major buckets of expenses, Greater Phoenix is lower cost than peer markets.

Source: ACCRA 2019 Q3 Cost of Living Index

Personal Income TaxGreater Phoenix has the lowest personal income tax of those states that have a personal income tax across all income levels. With its affordable cost of living and low taxes rates, income goes further in Greater Phoenix.

State $50,000 $150,000 $270,000 $500,000 $1 Million Or MoreArizona 3.36% 4.24% 4.54% 4.54% 4.54%California 8.00% 9.30% 9.30% 11.30% 13.30%Massachusetts 5.05%New York 6.21% 6.49% 6.85% 6.85% 8.82%

Source: Tax Foundation 2019. Tax rates are for single filers.

Cybersecurity

Parks & RecreationGreater Phoenix is home to hundreds of parks and hundreds of miles of hiking, biking and walking trails. The Greater Phoenix region is home to the largest municipal park in the United States, South Mountain Park. South Mountain Park covers more than 16,000 acres. Other large parks in the region include the White Tank Mountain Regional Park, Camelback Mountain, Piestewa Peak, and the Superstition Mountains. Notable walking trails in the region include the canal system, Tempe Town Lake, the Greenbelt and Papago Park.

Quality of Life

Cybersecurity

Quality of LifeCybersecurity

Metro Average Commute Times Yearly Commute Index

Phoenix 26.7 minutes 9.6 days 100.0%

Boston 32.2 minutes 11.6 days 120.6%

Los Angeles 31.3 minutes 11.3 days 117.2%

New York 37.6 minutes 13.6 days 140.8%

San Francisco 34.7 minutes 12.5 days 130.0%

Seattle 31.6 minutes 11.4 days 118.4%

Source: ACS 2018 1-Year Estimates

Commute Times & Light RailMany companies that have recently expanded into the region have commented on the ease of access to workforce and the accessibility of the market. An important aspect of this is the region’s commute times which are significantly shorter than competitor markets, giving your workforce more time to enjoy their lifestyle and less time in traffic. The region has a modern freeway system and an expanding light rail, ensuring there is a robust supply of talent no matter where a business is located.

Greater Phoenix Regional Highway MapThe map below displays existing and planned highway infrastructure in Greater Phoenix. The region’s highways are well-planned and provide easy access to all the major submarkets in the region. In addition, proximity to Interstates 8 and 40 creates seamless access to California markets.

Key InfrastructureCybersecurity

Greater Phoenix Airport AccessGreater Phoenix has regular and consistent access to all tier one cybersecurity markets. With an average of over 100 flights per week to these markets, Greater Phoenix is well connected. The table below shows weekly direct flights to leading cybersecurity markets for April 2018.

Key Infrastructure

Destination Total Direct Flights Per Week From Phoenix

Seattle, WA (SEA) 106

Los Angeles, CA (LAX) 130

New York, NY (LGA, JFK, EWR) 85

Boston, MA (BOS) 27

San Francisco, CA (SFO, OAK) 113

Source: Phoenix Sky Harbor Flight Schedule November 2019

Cybersecurity

Statutory IncentivesStatutory IncentivesEven with the highly competitive tax environment in Greater Phoenix and Arizona, there are several tax incentives that can be utilized to mitigate operating costs. Some of the most relevant to the cybersecurity industry are listed below. Please note that this is not a comprehensive list of all incentives available within the state of Arizona. Additionally, it should be noted that this document is only a guide for potential incentives. Actual incentives will depend on actual project parameters and varying program qualifications and requirements as determined by the Arizona Commerce Authority.

Cybersecurity

Quality Jobs Tax Credit:The Quality Jobs Tax Credit program awards $9,000 of tax credits over three years for qualifying companies. The chart below highlights minimum qualifying capital expenditure and wage rate within an urban area, while the texts describe additional program parameter.

Capped at 10,000 jobs per year

Employer must offer to pay at least

65% of employee health insurance

premium

$9K of corporate income tax credits

per job, spread over 3 years

($3,000/employee/year).

Min. New Jobs CountyMedian Wage Maricopa Min. CapEx

25 100% $37,352 $5,000,000

25 125% $46,690 $2,500,000

25 150% $56,028 $1,000,000

25 200% $74,704 $500,000

Urban

R&D Tax Credit:• Refundable and nonrefundable corporate income tax credits for qualified research and

development done in Arizona, including company funded research at a state university

• Credit amount is 24% of first $2.5 million in qualifying expenses plus 15% of the qualifying expenses in excess of $2.5 million

• Qualifying small companies (less than 150 FTE) can apply to make their credit refundable (75% of nonrefundable credit value). A company can receive up to $2.0M in refundable credits per year

Rankings & Recognition

#1Phoenix was ranked #1 Fastest Growing City

by population in Business Facilities’ 2019

Metro Rankings Report

#1Arizona State University named

America’s Most Innovative University 5

years in a row by U.S. News & World

Report

#3Sky Harbor International Airport ranked

3rd in the Wall Street Journal’s “The Best

of the Biggest Airports”

Top TierAPS and SRP rank as top business

service providers by J.D. Power and

Associates for reliability

Top 10In 2019, Arizona was ranked in the top

10 best states to start a business by

WalletHub

Top 10Greater Phoenix is ranked in the top

10 for low catastrophic and natural

disaster risk

Top 20In 2018, two cities within the region

were listed in the top 20 happiest

cities in the nation

Top 20Arizona ranked in the top 20 states for

doing business in 2019

Cybersecurity

The Greater Phoenix region has the right mix of quality, affordability and livability to support a wide range of cybersecurity operations. The assets that drive the region’s status as a location of choice include:

• A large and connected talent pipeline to provide a robust supply of specialized workers to support cybersecurity operations

• A competitive operating cost environment with lower annual expenditures than every major competitor market

• A highly affordable market for workers allowing a higher quality of life thanpeer markets

Not only does the region have the right balance of factors to support your operations, the region is actively engaged in improving the competitiveness of business within the region.

Summary & ConclusionCybersecurity